Catch Your Members On The Go

A recent study by the Neilson Company examines the activities and places that consumers are most often using their mobile devices. While the study yields some quite humorous results, it also provides insight into when a financial institution’s members may be most often using their mobile banking solutions.

Most notably, the majority of mobile users, 30 percent of tablet users and 20 percent of smartphone users, are browsing their devices while watching television. Another chunk of mobile users are using their mobile phones while shopping or running errands.

Financial institutions should begin to think about where their customers are located when making mobile transactions to better serve them.

You can see the full infographic here.

 

How do you reach your members on the go? Tweet at us @bankingdotcom or let us know in the comments below.

 

Startup Lessons Learned: A Conversation With Intuit CEO Brad Smith

Last week in San Francisco, more than 500 entrepreneurs and developers attended the Startup Lessons Learned Conference to receive insights from leaders within innovative companies. Intuit’s CEO Brad Smith took the take to speak with Eric Ries. You can watch the video below:


Watch live video from Startup Lessons Learned on Justin.tv

Bank of America, Wells Fargo and JPMorgan Start Payments Service

Research shows that customer’s payment preferences are moving to online and mobile channels. Financial institutions have to engage customers on their terms, in order to meet the changing customer landscape.
Three of the U.S.’s top banks declared their strategy Wednesday. What’s yours?

What We’re Reading

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below.

  • Not Just Fun and Games

American Banker

Alice Albudget is a rising Hollywood starlet who loves to buy expensive handbags and designer dresses with her credit card. Every day hundreds of people attempt to become her money manager and teach her how to use credit cards properly and control her spending habits. These trial money managers-who must keep her happy or risk getting fired-are among a growing number of people getting a financial education through a handful of online video games. The D2D Fund, a financial literacy nonprofit in Roxbury, Mass., is leading the charge in developing such games. It has introduced five so far, including Celebrity Calamity featuring Albudget.

Read more

  • Tech-Savvy Crowd Demands More Personal Service from Banks, Not Less

American Banker

You can serve retail banking customers in branches, online and through mobile devices. But good luck getting them to ditch the first two for the mobile option. New research by Novantas LLC, Forrester Research and others adds weight to an idea being kicked around in the industry: that mobile may have its limits as a way to entice tech-savvy customers, reduce branch use and cut costs. Depending on how it is deployed, it can even result in more phone and branch contacts.

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  • Survey Finds In-Store Debit Card Use Just Barely Beats Cash

American Banker

Consumers use debit cards more often than other payment options at the point of sale, but their use of cash is not far behind. This level of cash use indicates that consumers are limiting their spending to stay within their budgets, according to data from Javelin Strategy and Research. Javelin surveyed 4,444 consumers in September and asked how many times in a typical month they use different payment methods when shopping at stores, including debit cards, cash, credit cards, debits to their checking account through the automated clearing house network, prepaid cards, paper checks, store credit cards and retailer gift cards.

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  • The Future of Banking

BillShrink.com Blog

As more people adopt smart phones, the importance and potential of mobile banking continues to grow. Many banks have created banking apps that allow customers to access their accounts, pay bills, spend money and more. One innovative app that’s out there is PNC’s Virtual Wallet. Users can clearly view a calendar of deposits and bill due dates to stay on top of their finances and even deposit money into their virtual piggy bank by shaking their phone.

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  • Finovate Spring 2011 Roundup

Celent Banking Blog

Last week Celent’s Jacob Jegher  headed out to San Francisco for Finovate Spring. Finovate is his favorite conference of the year for a few reasons. Jacob  was able to attend the demos and was not in meetings the entire time; the demos are a short 7 minutes – more than enough time for an analyst to make a quick judgement; and finally, it is a true showcase of bank innovation. It’s a mix of companies, some are 2 guys in a garage, others are small companies, and a few are established players.

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  • Conversations in the Branch and Transactions in the Cloud

Gonzo Banker

In a nutshell, bankers are still striving to position the branch as a place where customers will seek advice concerning their financial position and select products and services that are customized to their unique situation. Many believe the complexities and nuances of one’s financial life make it difficult to conduct banking in a purely remote fashion. Sure, somebody can check a balance, transfer money or even fill out a loan application, but most believe that the “online only” customer will not become the norm in our lifetimes. In addition, bankers are seeking to steer their investment in branch staff away from transaction processing and more toward revenue-producing activities.

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  • Mobile Payments, Checks, and “The Lying Twins”

Javelin Strategy & Research Blog

Industry leaders and strategists: we need to stop planning for mobile to be the second coming of electronic payments, because mobile payments is here now. Once we accept that truism as reality, the data and strategic next steps come into clearer focus. We’ve lived far too long with what Javelin’s James Van Dyke calls the lying twins: One day, paper will suddenly decline from the payments stream and, One day, mobile will suddenly replace plastic or paper payments. Folks, it just doesn’t happen that way.

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  • Zong: A Payments Company Name to Remember

Net Banker

Today, in order to reach the next level, buy virtual pets or beat your opponent a half a world away, a player/avatar/consumer will typically transact multiple times per month in order to buy a Facebook credits or other virtual currency (cash, coins, gems, etc.). These transactions can often occur in the heat of battle (literally) and the last thing any good soldier wants to do is stop progress in order to begin the seemingly weeklong process of taking out their credit card and typing a bunch of numbers just to spend a $2.99 to re-fill their weapons cache.  Before you could say billabong, along came Zong to make it as quick and as easy as a song. How? They ask if you want the charge to tagalong on your mobile phone bill.

Read more

The Mobile Wallet

Mobile technology is changing the way consumers and businesses process payments. From smartphone apps that allow you to process payments, to depositing checks via your mobile device, it’s increasingly easy to rely on a phone as your wallet.

CreditSesame.com posted an infographic posing the question, “Will Smartphones Replace Your Wallet?” The infographic outlined interesting stats about the future of mobile payments, including:

  • The value of purchases via mobile phones is expected to increase at a compound annual growth rate of 68% between 2010 and 2015.
  • Spending via Smartphones is expected to reach $214 billion by 2015.
  • Paper money is on the decline. Over the next five years, cash use will decrease by $200 billion in the U.S.

To view the full infographic, visit CreditSesame.com.

How do you see mobile payments changing the banking industry? Let us know in the comments section below.

Reputation is the New Marketing Currency for FIs

The growth and convergence of the Internet, social media, and mobile technologies have created a disruptive shift in how businesses and their customers interact. Social media and other online connective technologies provide customers and prospects with an instantaneous, information rich platform for researching, discussing and buying everything from books to buildings.

This ability to access and share information has greatly increased pricing, product and corporate transparency, shifting market power from producers to consumers. It has also reduced the effectiveness of many of the traditional outbound marketing, communications and sales methods used by financial institutions.

The recent Banking.com post, Social Media Statistics: By-the-Numbers, May 2011, illustrates the size, scope and growing role of social media. Examples of some of key statistics included in the article are:

• 800,000,000 recommendations (aka ‘stumbles’) are made each month on news discovery service StumbleUpon

• 132,500,000 people in the US will log in to Facebook regularly this year; by 2013 that number will increase to 152.1 million

• 6 years of video is uploaded to YouTube every day

This massive increase in information, connectivity and transparency results in a greater role for corporate reputation in the purchase decision making process for both consumers and businesses. Because of this, financial institutions will need to build and manage their social reputations by actively participating in social media, delivering on commitments, building strong business relationships and providing value to their customers.

For more on this topic, please see the Intuit 2020 Report – The Future of Financial Services.

 

About Steve King:  Steve is a Partner at Emergent Research. His current research and consulting is focused on economic decentralization, the growth of small business and the future of work and workplaces. Steve has extensive consulting, marketing and general management experience with both large and small companies.  Steve is a senior fellow and board member at the Society For New Communications Research, a research affiliate at the Future of Work and an advisory board member at Pond Ventures.

About Carolyn Ockels:  Carolyn is the Managing Partner at Emergent Research.  Her current research and consulting is focused on economic decentralization, the growth of small business and Gen Y.  Carolyn has extensive consulting experience, and prior to Emergent Research managed Cambridge Energy Research’s Asian energy consulting business, led market research in Japan for RCM Capital Managment, and held a variety of domestic and international consulting positions with the economic forecasting and planning consulting firm Data Resources, Inc.

Beyond the swipe: Intuit GoPayment brings NFC innovation to life

Intuit is giving attendees at this week’s Google I/O conference a taste of the future –and that future involves making payments by simply bumping two smartphones together.

Intuit’s Payment Solutions division has developed a concept demo that reimagines its GoPayment mobile credit card processing application using near field communications, or NFC. The company is showcasing the demo at the Google I/O developer conference in San Francisco today and tomorrow.

“With GoPayment we are exploring every avenue for innovation that best meets our customers’ needs, and this includes technologies such as NFC that are still in the early stages of adoption,” said Chris Hylen, vice president and general manager of Intuit’s Payment Solutions division. “Innovation is happening rapidly in the mobile payment space, and we want to be ready to help the millions of small businesses and consumers we serve benefit from the latest technology.”

Built on Google’s Android mobile platform and using NFC technology with Nexus S by Google, Intuit has transformed its existing GoPayment mobile credit card processing application into one that transfers credit card data via radio waves, eliminating the need for the actual card or any add-on card reader hardware. Using emerging mobile technology such as NFC, small businesses and their customers may one day be able to conduct daily tasks on their mobile devices — including paying and getting paid — faster, easier and more securely. All they will need is their mobile device and nothing else. Check out this video to see it in action:

*originally posted on the Intuit Network

About John Parkin

John Parkin works on Intuit’s employee communications team, managing content on the intranet and finding cool stories to tell to employees.

Social Media Statistics: By-the-Numbers, May 2011

Below are interesting statistics on social media usage. Feel free to share your favorite social media statistics in the comments section.

  • 800,000,000 recommendations (aka ‘stumbles’) are made each month on news discovery service StumbleUpon (Source: StumbleUpon)
  • 155,000,000 tweets are issued every day, a three-fold increase from one year ago (Source: Twitter)
  • 92% of B2B marketers are involved in social media marketing, with LinkedIn being cited by 26 percent of survey respondents as the most important channel (Source: B2B Magazine)
  • 132,500,000 people in the US will log in to Facebook regularly this year; by 2013 that number will increase to 152.1 million (Source: eMarketer)
  • 67% of Twitter users said they would be more likely to make a purchase from a follower, while only 51 percent of Facebook users said something similar about their friends (Source: AllTwitter)
  • 88% of marketers found that social media helps get them increased exposure; 72 percent saw increased traffic and subscriptions as a result of social media (Source: Social Media Examiner)
  • 80% of marketers said they were planning iPad-based advertising and/or an iPad-based app this year (Source: Effie Worldwide)
  • 70% of marketers plan to increase spending on social media by at least 10 percent this year (Source: Effie Worldwide)
  • 6 years of video is uploaded to YouTube every day (Source: YouTube)

Celent: Tablets and Banking

There are a lot of reasons to love Jacob Jegher‘s latest post, Tablet Wars: Online/Mobile Banking Will Never be The Same. First, if you know Jegher at all you know he’s not prone to making sensational broad sweeping statements. That alone make his post a must read.

Secondly, Jegher hits on all of the right points as to why tablets are a game changer, many of which his Celent colleagues have also teed up in recent months. In short:

  • Is banking on a tablet considered online banking or mobile banking? The answer is both and neither. Tablets are unique devices with distinct capabilities and form factors.” The bit about form factors is particularly important. Intuit’s hit on this in discussions around experience design and Omar Green’s a huge champion of what he likes to call “Mobile Context.”
  • Do tablets impact consumer banking, small business banking, or corporate banking? The answer is all of the above.” What’s important here is that tablets influence all three of these categories very differently.

The best part about this post, in my opinion, is that all of Jegher’s comments point in the same direction. End users, regardless of their stripe (consumer, big time enterprise executive, small business owner) all want what they want, when they want it, where they want it. Simply put this bolis down to meeting a customer at their point of need and in the right context.

*originally posted on the Intuit Network

About Allyson Casey:

Allyson Casey leads Intuit’s Industry Analyst Relations program. She is located in the wilds of Maine and spends her days turning data and pie charts into plain speak and making sure she’s connected with the vast community of influencers.

What We’re Reading

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below.

  • Virtual Banking Worlds Provide Tangible Lessons

American Banker

It’s a fact of doing business — even the most useful banking apps will not get as much screen time as Angry Birds. But bankers can learn from popular games and use similar technology as part of their customer interactions. Some vendors, including Hewlett-Packard Co., are even building gamelike digital branches for banks. The 3-D environment, based on a platform called web.Alive that HP and Avaya demonstrated this month at a conference in New York, allows bankers and their customers to navigate avatars through a computerized replica of a customizable bank branch.

Read more

  • Discover to Pay $50 Referral Fees in Social Media Push

American Banker

Combining targeted online marketing with social media, Discover Financial Services is paying a $50 bounty this week for each referral who becomes a cardholder. Discover will pay the bonuses for its online “Refer-A-Friend” program as Cashback Bonus credit card rewards, Sanjay Gosalia, Discover director of online acquisitions, said Friday at the 23rd Annual Card Forum and Expo here. It is not the first time a card issuer has paid for referring other customers; American Express Co. and Citigroup Inc., among others, have sent emails and direct mail offers to customers promising rewards of $25 to $50 for successfully referring friends as cardholders. But by leveraging targeted online ads and social media, Discover’s effort is broader and more integrated than its competitors’ peer-referral efforts, Gosalia said.

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  • Mobile Payment Apps Offer Benefits of NFC Without the Hardware

American Banker

A host of new mobile payment applications promise many of the perks of near-field communication technology, without the costly hardware. NFC chips allow phones to function as electronic wallets. But mobile phone users can now make payments from their checking accounts via Dwolla Corp.’s software, and they may soon be able to store and view receipts with PayPal Inc.’s Fig Card, or receive special offers using ProPay Inc.’s Zumogo — all using technology that is much more common in today’s phones than NFC. Even if these systems cannot derail the shift to NFC chips, they may help train consumers to think of their phones as an eventual replacement for plastic cards. PayPal, a unit of eBay Inc., drew attention to the hardware-independent approach when it announced last week it had acquired the startup Fig Card.

Read more

  • Moving Mountains to Save Trees

Bank Technology News

In a time when most banks were scurrying to find ways to shave costs, Alabama’s Superior Bank found a way to slice a quarter of a million dollars by overhauling its document workflow and reducing the paper used in documentation. The $3.2 billion asset-bank licenses FormSpeed, a Web-based workflow productivity tool from Integrated Media Management (IMM) that collects information and routes forms within the bank. Superior Bank uses FormSpeed to create electronic forms that pre-fill certain types of information, and has eliminated the need for the back office to re-key information already entered by the document originator. The product also allows users to design their own electronic forms, with data collection and time-based or approval-based routing elements, such as notifying a manager if a certain period of time has passed without action, or sending the document to multiple approval sources at the same time.

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  • The Key to Making Mobile Banking Profitable? Marketing, Aite Says

Bank Technology News

Aite’s latest survey of mobile banking usage, for which it polled more than 1,000 U.S. consumers, turned up five new facts. 1. Other than being younger, mobile banking users are not different from general banking customers. “That’s important,” said senior analyst Ron Shevlin in an interview yesterday. “In the evolution of online banking and bill pay, the early adopters were affluent consumers. That’s not the case with mobile banking, that’s been mainstream right from the start.” Mobile banking early adopters have a similar average income as the non-adopters ($52,952 versus $52,821).

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  • 2011 U.S. Retail Banking Satisfaction Study

JDPower.com

Customer Satisfaction: JD Power found that retail banks improved customer satisfaction for the first time since 2007. Overall customer satisfaction moved up 4 points to 752 out of 1,000 point scale. Of note, satisfaction in the branch, account opening, product offerings and general brand image materially improved. On the negative side, satisfaction with fees was markedly down.

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  • Mobile Wallet That Saves Me Money? Now, That’s “Smart”

iMedia Connection

You surely will laugh at author Jeff Hasen’s resistance to deposit a check through an ATM machine – in 2011. As progressive as he is about technology, to this day Jeff has always walked into a bank, waited on line and walked out with a deposit record from a teller. On a panel at last week’s Boomer Summit in San Francisco, Intuit’s Omar Green made a case for consumers to be “smarter”. Of course, Jeff has a smartphone – actually he carries two. What Jeff doesn’t have is a smart mobile wallet.

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  • Pay-by-Phone Dialed Back — Carriers Scrap Plans for Their Own Network, Look to Big Credit Card Companies

The Wall Street Journal

The biggest U.S. wireless carriers are scaling back a joint venture for mobile payments that they originally hoped would compete with Visa Inc. and MasterCard Inc., reaffirming the traditional credit card companies’ clout in the nascent market for mobile transactions. The venture known as Isis, formed by AT&T Inc., Verizon Wireless and T-Mobile USA, initially aspired to set up its own payments network and collect fees on every transaction. Customers would maintain accounts directly with their wireless carrier, rather than with a credit-card company. Now, the group has adopted the less ambitious goal of setting up a “mobile wallet” that can store and exchange the account information on a users’ existing Visa, MasterCard or other card, people familiar with the matter said. The carriers are scrambling to find other ways to make money from the transactions.

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